[ 2016-01-30 ]

Finance Minister presents bill to amend Income Tax Act

Finance Minister presents bill to amend Income Tax Act
The Minister of Finance, Mr Seth Terkper, on
Friday laid a bill before Parliament to amend the
Income Tax Act 2015, (Act 896). The presentation
of the Income Tax (Amendment) Bill, 2015 came
barely 24 hours after Parliament had challenged
the authority of the Ghana Revenue Authority (GRA)
to suspend the implementation of the act without
recourse to the House.

The Speaker, Mr Edward Doe Adjaho, referred the
bill to the Finance Committee of Parliament for
consideration and delivery of a report to the
House.

He said the committee could also look at any
consequential issue and advise the House
accordingly.

Background
The Income Tax Act 2015, which was passed by
Parliament and assented to by President John
Dramani Mahama on September 1, 2015, was supposed
to come into effect on January 1, 2016.

Under the act, all interest paid to an individual
is to attract one per cent tax.

This means that any interest accrued on treasury
bills, fixed income deposit, interest from banks,
among others, will attract a tax of one per cent.

Following public uproar against the tax, the GRA
directed all financial institutions to suspend its
imposition.

A ranking member of the Finance Committee of
Parliament, Dr Anthony Akoto-Osei, raised the
issue in Parliament last Thursday, pointing out
that the GRA had no authority to suspend the act,
pointing out that when Parliament passed an act,
no institution had the right to suspend it.

Dr Akoto-Osei said it was crucial for Parliament
to send a notice to institutions that they could
not 'negate' an act passed by the House.

Speaker
The Speaker of Parliament, Mr Edward Doe Adjaho,
supported the position of Dr Akoto-Osei and
stressed that the GRA had no authority to suspend
the Income Tax Act that had been passed by
Parliament.

He said until such an Act was amended by
Parliament, it remained in force.

Dr Doe Adjaho asked the Majority leader to take
the issue up with the appropriate authorities.

Read more at:
http://www.modernghana.com/news/671636/finance-minister-presents-bill-to-amend-income-tax-act.html

Source - Graphic Online

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